TLDR
- India banned Kalshi after its 2025 Online Gaming Act took effect May 1, 2026, classifying event-based trading as illegal gambling
- Kalshi updated its member agreement on June 17, barring users in India from trading
- India represented a large market — one cricket match alone generated over $27 million in trading volume
- Kalshi now lists 55 restricted jurisdictions, including Brazil, Spain, Indonesia, Argentina, and Portugal
- The core dispute is whether prediction markets are financial tools or gambling platforms
Kalshi Blocked in India as Prediction Markets Face Global Crackdown
Kalshi has added India to its restricted jurisdictions list after the country’s new online gaming law came into force and regulators classified the platform as an illegal gambling service.
India’s Promotion and Regulation of Online Gaming Act 2025 took effect on May 1, 2026. The law prohibits platforms offering money games based on uncertain outcomes.
Indian authorities rejected Kalshi’s argument that it operates as an information exchange. On April 25, 2026, the Ministry of Electronics and Information Technology sent Kalshi a formal warning about continued access by Indian users.
When platforms did not restrict access on their own, the ministry moved to enforce the rules. Internet service providers were ordered to block Kalshi’s main rival, Polymarket, and VPN providers were warned against helping users bypass the restrictions.
Kalshi updated its member agreement on June 17. The revised terms now explicitly bar users based in or living in India from trading event contracts.
A Costly Market to Lose
India was not a small market for Kalshi. A single domestic cricket match recently generated more than $27 million in trading volume on the platform.
Losing India is a clear blow to Kalshi’s international growth plans. The platform has been working to position itself as a mainstream retail financial product outside the US.
The restriction shows how fast prediction markets are hitting regulatory walls abroad. In 2026 alone, more than 10 governments have introduced bans or major restrictions on these platforms.
A Growing Restricted List
Kalshi now has 55 countries on its restricted list. Brazil blocked the platform in April, saying its political and economic contracts amounted to unlicensed gambling.
Spain opened disciplinary proceedings in late May and ordered domestic internet providers to cut access. Indonesia, Argentina, and Portugal have all imposed similar blocks in the past six months.
Each new ban adds more compliance pressure and makes broad international access harder to maintain.
The Classification Dispute
At the heart of the issue is a disagreement over what prediction markets actually are. In the US, Kalshi operates with approval from the Commodity Futures Trading Commission as a designated contract market.
Kalshi says trading on geopolitical events, economic data, or climate outcomes serves a financial hedging function. It argues this is different from casino gambling.
Regulators outside the US have largely disagreed. Most say that putting money on the outcome of a future event is gambling, regardless of the subject matter.
That disagreement has made Kalshi a test case for how governments handle event-based trading.
With India now closed and the restricted list at 55 jurisdictions, Kalshi’s push for global growth faces real limits. Trading volumes in the sector remain high, but the regulatory environment outside the US continues to tighten.
